RATING RATIONALE
23Apr2024

Shivay Kraft Papers Pvt. Ltd.

Brickwork Ratings reaffirms the long-term and short-term ratings for the Bank Loan Facilities of Rs. 39.88 Crs. of Shivay Kraft Papers Pvt. Ltd. based on best available information, as the issuer did not cooperate.

Particulars
Facilities** Amount (Rs.Crs.) Tenure Rating#
Previous Present Previous
(01 Mar 2023)
Present
Fund Based 33.88 33.88 Long Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Non Fund Based 6.00 6.00 Short Term BWR D
Downgrade/ISSUER NOT COOPERATING*
BWR D
Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed
Grand Total 39.88 39.88 (Rupees Thirty Nine Crores and Eighty Eight lakhs Only)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure
*Issuer did not cooperate; based on best available information.


RATING ACTION / OUTLOOK / NATURE OF NON-COOPERATION

In view of the non-availability of information and lack of cooperation from “Shivay Kraft Papers Pvt. Ltd.” Brickwork Ratings has reaffirmed the long-term and short-term ratings at “BWR D” and continued the ratings in the “Issuer Not Cooperating” category, based on best available information as the Issuer did not cooperate.

The lenders/investors may note to exercise due caution while using the above ratings which mention “Issuer Not Cooperating", since the rating lacks any projections or forward looking component as they are arrived at based on best available information without any management/banker's interaction.

The ratings were due for review In March 2024. BWR took up with the company recently over emails and through telephone calls to obtain the required information. Despite the best efforts of BWR to get at least the minimum required information for a review, the entity has not provided the same.

Thus, due to lack of management cooperation to furnish adequate information about the company's performance despite follow up, coupled with its non-submission of (No Default Statement) NDS, BWR is unable to assess its financial performance or its ability to service its debt and maintain a valid rating. Accordingly, the ratings have been reaffirmed and continued in the Issuer Not Cooperating category. The rating reaffirmation is based on the lack of up-to-date information on the company’s performance.

LIMITATIONS OF THE RATING

Information availability risk is a key factor in the assessment of credit risk as generally, non-cooperation by the rated entities to provide required information for a review of the assigned rating may also be accompanied by financial stress. Users of the credit rating should therefore take into account possible deterioration in the credit quality of the rated entity arising from its non transparency withholding of information required for a review of the rating.

ABOUT THE ENTITY
Macro Economic Indicator Sector Industry Basic Industry
Consumer Discretionary Media, Entertainment & Publication Printing & Publication Printing & Publication

M/s. SHIVAY KRAFT PAPERS PRIVATE LIMITED is incorporated on 26/11/2020 with the objective of Manufacturing of Kraft Papers with the capacity of 120 MT per day at Mehsana. The directors of Shivay Kraft Papers Private Limited are Mr. Hareshkumar Shankarbhai Patel, Ghanshyambhai Keshavlal Patel, and Naimesh Haribhai Patel. The commercial production is expected to be start by March 2022. The registered office of company is in Mehsana situated at 47/ Narmade Residency,  Dediyasan, Village dediyasan (Part) Mehsana, Gujarat 384002 India and the factory is  situated at Survey No. 1322, (Old Block/ Survey No. 1204 paiki -3), Palaj, Mehsana.

KEY FINANCIAL INDICATORS

Please refer to the following link for the previous detailed rationale that captures the Key Financials Drivers and their Description, Liquidity Position. Rating Sensitivities, Key Financial Indicators. View Previous Document

NON-COOPERATION WITH PREVIOUS CREDIT RATING AGENCY

No outstanding non-cooperation rating with any other CRA.

ANY OTHER INFORMATION

No Other Information.

RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
Facilities Current Rating  (2024) 2023 2022 2021
Type Tenure Amount
(Rs.Crs.)
Rating Date Rating Date Rating Date Rating
Fund Based LT 33.88
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
01Mar2023
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
02Mar2022
BWR B Stable
(Assignment)
NA
NA
Non Fund Based ST 6.00
BWR D
(Continues to be in ISSUER NOT COOPERATING* category/Reaffirmed)
01Mar2023
BWR D
(Downgrade/ISSUER NOT COOPERATING*)
02Mar2022
BWR A4
(Assignment)
NA
NA
Grand Total 39.88 (Rupees Thirty Nine Crores and Eighty Eight lakhs Only)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.

Hyperlink/Reference to applicable Criteria
Analytical Contacts

R Sriranjani

Rating Analyst sriranjani.r@brickworkratings.com

Hari Kishan Yadav

Associate Director - Ratings hari.ky@brickworkratings.com
1-860-425-2742 | media@brickworkratings.com
Shivay Kraft Papers Pvt. Ltd.
ANNEXURE-I
Details of Bank Facilities rated by BWR
SL.No. Name of the Bank/Lender Type Of Facilities Long Term(Rs.Crs.) Short Term(Rs.Crs.) Total(Rs.Crs.)
1 The Mehsana Urban Co-operative Bank Term LoanOut-standing 19.88 _ 19.88
2 The Mehsana Urban Co-operative Bank Cash CreditSanctioned 14.00 _ 14.00
3 The Mehsana Urban Co-operative Bank ILC/FLC/BGSanctioned _ 6.00 6.00
Total 33.88 6.00 39.88
TOTAL (Rupees Thirty Nine Crores and Eighty Eight lakhs Only)
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About Brickwork Ratings

Brickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,560 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner.

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